CHAPTER IV

INDUSTRIAL PROFILE

OF SMALL SCALE

INDUSTRIES IN

TIRUNELVELI

DISTRICT

CHAPTER – IV

INDUSTRIAL PROFILE OF THE SMALL SCALE INDUSTRIES

IN TIRUNELVELI DISTRICT

4.1. Introduction

Tirunelveli is situated in southern most District of Tamil Nadu. It is

described as a microcosm of the state, due to its physical feature like greenish

mountains and low plains. It has rich soil, adequate water for irrigation as well

as for industrial development. It has a conducive climate to live comfortably.

4.2. Historical background of Tirunelveli

The history of this District is bound up with that of the Pandya just like

Madurai and Ramanathapuram areas. Even earlier, a pre-historic race is said to

have occupied this land. During the latter half of the 18th

century, the East

India Company was frequently at war with the Poligars on behalf of the

Carnatic Nawab in Tirunelveli and Madurai. With the fall of Tippu in 1799,

British concentrated their force in the south and suppressed the Poligars. At

about this time, the Nawab of Carnatic became powerless and left the

management of the territory to the British.

The Nawab was pensioned off and the management of the revenues of

Tirunelveli was made over to the British in 1801 under a treaty. Thus the

British rule started which lasted till 1947. Before the establishment of British

rule, the Portuguese and Dutch occupied Thoothukudi and other port areas.

After the British rule, Swaraj movement was started and a number of

prominent persons of this District fought against the British and clamoured for

independence of the country. In the year 1986 the District was divided into two

parts namely Tirunelveli and Thoothukudi vide State Government Notification

G.O. Ms.No.1314 dated 27-9-86. Main languages spoken in the District are

Tamil and Telugu.

4.3. Geographical position

The prominent hills are part of the Western Ghats and form the

boundary between Kerala State and this District on the western side. The

Western Ghats run to a length of about 160 km. in the District starting from the

north-western part in Sankarankoil Taluk and ending at about 15 km. from

Kanyakumari. Valuable trees are found in the Western Ghats. The Western

Ghats lie on the western part of Sankarankoil, Tenkasi and Ambasamudram

taluks. Near the border of Tenkasi and Ambasamudram taluks, the ghats widen

forming undulating hills, broad valleys and extensive plateau.

The height of the hills diminishes considerably near Shencottai and

permits communication by road and rail to places in Kerala through the

Shencottai pass. Besides this, a portion of the range lies on the southern part of

Ambasamudram taluk and in the western and southern portions of Nanguneri

taluk, it diminishes in height at Aramboly permitting road communication with

Kanyakumari. The hills of the Western Ghats have valuable trees, which are

being exploited for commercial purposes. The conspicuous among the hills are

Kallakadai Mottai (5721feet) above Sivagiri, Kottaimalai (6335 feet) over

Puliyangudi and Kuliratti (5876 feet) near Kadayanallur Krishnapuram.

Thamiraparani river rises in the Agasthiyamalai (Pothigai hills) of the Western

105

Ghats and descends to the plains at Papanasam in Ambasamudram taluk. The

height of the Agasthiamalai is 6132 feet and is considered as the seat of the

Saint Agasthiyar who was said to be conducting research in Tamil language.

Tirunelveli District is bounded by Virudhunagar District in the North,

Kerala State and Kanyakumari District in the West, Gulf of Mannar in the

South and Tuticorin District in the East. The District lies between 80 10’ and

90 40’ north latitude and 770 21’ and 770 99’ east longitude. The general

geographical formation of the District is hill area. Thamiraparani River and

Chittar River are flowing in the District. Thamiraparani River is a perennial

river whereas Chittar River will be dry during the summer season. The total

geographical area of the District is about 681657 sq.km. The District is divided

into 19 blocks. The name of the taluks and area are shown in the Table 4.1.

Table 4.1

Name & Area of the Taluks and Area in Tirunelveli District

S.No. Name of Taluk Area in Sq. Km.

1 Ambasamudram 1910.60

2 Shencottai 162.54

3 Sivagiri 371.62

4 Sankarankoil 714.81

5 Radhapuram 642.55

6 Tirunelveli 264.79

7 Nanguneri 1311.74

8 Palayamkottai 440.94

9 Tenkasi 996.98

Total Area 6816.57

Source: District Profile during 2009 – 10

106

4.4. Population

The population of Tirunelveli District grew from 16,98,578 in 1961 to

27,40,065 in 1991. The growth rate indicates that there has been a significant

increase during the 1981-91 decade with the average growth rate being 2.33%

per annum during this decade. According to the 1991 census Tenkasi taluk is

the most populated and Shencottai taluk is the least populated in the District.

The Sex ratio is 1024 females for every 1000 males in the District as per 2011

census. Out of the total population, males are 1518595 and females 1554285 as

per 2011 census.

4.5. Administration

The Tirunelveli District comprises of 9 taluks, 19 blocks and 1717

villages. As regards the hierarchy of administrative arrangement, there are 1

corporation, 6 municipalities, 37 Town Panchayats and 424 village panchayats

in the District. The community development blocks are Vasudevanallur,

Sankarankovil, Kuruvikulam, Melaneelithanallur, Shencottai, Tenkasi,

Alangulam, Keelapavoor, Kadaiyanallur, Manur, Palayamkottai,

Ambasamudram, Kadayam, Pappakudi, Cherenmahadevi, Nanguneri,

Kalakadu, Radhapuram and Valliyoor.

107

Exhibit 4.1

Tirunelveli District Map

4.6. Social condition

4.6.1 Transport Services

Transport services play a vital role in the economic development of the

nation opening up remote areas, stimulating the growth of agriculture as well as

industry, besides facilitating communication. Transport services also contribute

to the growth of the nation’s economy. The road network in Tirunelveli District

consists of national highways (94.000 km), national highways (A1) (181.00

km), state highways (561.039 km), corporation and municipalities road

(1001.54 km), panchayat union and panchayat road (1658.35 km), town

panchayat and townships road (863.51 km) and forest roads (114.450 km). The

108

national highway road from Madras to Nagercoil connects the District

headquarter with Madurai, Virudhunader and Nagercoil and also connects the

main cities within the Tirunelveli District. The railway network in Tirunelveli

District consists of broad gauge (95.448 km) and metre gauge (134.430 km).

Tirunelveli District consists of totally 27 railway stations.

4.6.2 Educational Services

Tirunelveli District, or more specifically, Palayamkottai, is called the

Oxford of South India as the city has excellent educational institutions. The

Manonmaniam Sundaranar University is named after the famous poet who penned

the Tamil Thai Vazhthu, the official song of the state. This University has 26

departments, and offers some unique courses in Tamil Nadu, like Criminology and

Criminal justice. In view of improving the quality of technical education in the

southern parts of Tamil Nadu, Anna University Tirunelveli was established in

2007. The University offers a variety of engineering and technology courses in

both undergraduate and postgraduate streams. Research facilities are being

established in a start-of-the-art campus near Palayamkottai. The District has many

prestigious old government and private colleges in the medical, legal, engineering,

arts, pharmaceutical and physiotherapy fields. School education is by the

government and private managements in the District.

4.7. Cultural heritage

Tirunelveli has a rich Hindu tradition. Though the roots of the city are

deeply entrenched in Hindu mythology, Tirunelveli is populated by people of

all religions, with Hindus, Christians, Muslims and Jains forming a major

109

proportion of the local people. However, the cultural heritage of Tirunelveli is

overwhelmingly Hindu and one of the most important reasons that it is famous

among tourists and art and architecture enthusiasts. Despite having a pluralistic

population, Tirunelveli in general, enjoys religious, racial and cultural

harmony.

4.8. Economic status

Tirunelveli has been an agricultural area throughout its history. The

District is a major producer of rice, coconuts, bananas, spices and forest-based

products. The District is home to almost 50% of the buffalo population of

Tamil Nadu. The District's livestock and poultry populations are as follows:

Table 4.2

Livestock population of Tirunelveli District

Catt

le

Bu

ffalo

Sh

eep

Goats

Pig

s

Hors

es a

nd

Pon

ies

Don

key

s

Rab

bit

s

Tota

l

lives

tock

Tota

l

pou

ltry

418,694 78,777 487,273 390,570 12,752 245 961 2401 67,877 1,218,583

Since some of the parts of the District are coastal area,

fishery development and production also claims importance. For the period

2005–2006, the total inland fish catch was 1,874 tonnes, and the total marine

fish catch was 7,014 tonnes. India Cements Limited is the third largest cement

company in India, and began at Sankarnagar in Tirunelveli in 1949.

The District is also rich in minerals, with a total of 407 mines and

quarries. Limestone, granite, and garnet sand are some of the minerals mined or

110

produced in the District. Major industries include textile, food and forestry

products.

A Special Economic Zone (SEZ) was introduced at Nanguneri in 2001.

A pharma park and windmill spare-parts and television-manufacturing factories

have been planned in this SEZ. The Tamil Nadu Industrial Development

Corporation (TIDCO) has planned a ` 700 crore high-tech industrial park

in Nanguneri in association with INFAC Group and Axes Technologies Inc of

the US. The state government is planning light manufacturing, design and

assembly facilities, modern infrastructure facilities and amenities in this SEZ to

attract a workforce from around the world.

4.9. Industries in Tirunelveli

In Tirunelveli District as on 31st July 2008 more than 16,000 small scale

industries are functioning. All these industries come under 18 major types. In

which the industries which manufacture chemical products account for one

third of the total SSIs. Among the registered SSI Units one third of the

industries are food processing industries. The chief items produced by large

scale industries in the District are cement, cotton yarn, textiles, chemicals and

chemical products. M/s. India Cements Limited has two plants, one in

Sankarnagar and another in Sankaridurg in Salem District for producing

cement. The production of "Portland Cement" in 1979 was more than 13 lakh

of tonnes. There are more than 20 textile mills situated in this District for the

production of yarn. The first spinning mill under co-operative moment was

established in this District during 1958 at Pettai. Most of them are situated in

111

Ambasamudram, Tirunelveli, and Nanguneri taluks. Tamil Nadu Sugar

Corporation Limited has established a factory at Tirunelveli, which has a

capacity to crush 1250 tonnes of cane a day.

4.9.1 Tiny Industries

Agricultural products, Pottery, Smithy, Carpentry, construction activity,

and Wood carving were the everyday occupations for the Artisans who where

by birth, more or less bound to pursue the vocations. Weaving, especially of

cotton cloth, was another old time industry. Other industries in the District are

safety matches industry, Bell metal, Brass vessels, Lacquerware industries,

Bullock cart manufacturing, Basket making Korai mat weaving and the like are

the noteworthy feature of the District.

The concentration of certain types of industries in a particular area like the

Bell Metal Industry in Vagaikulam, Korai Mat Weaving Units Pathamadai and

Veeravanallur, Lacquerware manufacture in Ambassamudram, Safety Matches

Radhapuram taluks, Bricks Units in Ambasamudram and Tenkasi Taluks, and cane

furniture making and saw mills in Shencottai and Tenkasi taluks. Some of the old

time industries vanished due to severe competition from the mechanized industries

and change of techniques in manufacturing and the development of research in

industrial designs and technologies. Poor patronage also led to the fall in demand

which finally led to the decline of these industries. The ordinary artisans,

Carpenters, Goldsmiths, Blacksmiths and Potters lived in most villages and their

work was much the same as in other Districts.

112

Production in Sankarankoil, Palmyra Products Manufacture in Nanguneri and

Scientific development and technological advancement brought

innovation, invention and improvement in the consumer durables. This trend

has brought a change in the attitude of consumers who played a vital role

causing the decay of certain industries like those producing bell metals, brass

articles, bullock carts etc. Another reason for the decay of certain industries

was the low percentage of profit margin. This resulted in the decline of certain

industries like basket making, manufacturing of agricultural implements with

primitive technology and so on.

a) Brass Works

Brass vessels are made out of plates of metal, which are heated and

beaten out on the anvil; sections are welded together and reduced to their final

shape by a process of gentle hammering. Hindu idols are produced at

Vagaikulam; elsewhere the productions are chiefly domestic vessels.

b) Bell Metal Industry

Bell metal vessels are made in various parts of the District. The industry

is mainly found in places like Vagaikulum and Mannarkoil in Ambasamudram

Taluk, Tirunelveli and Narasinganallur in Tirunelveli taluk and Sankarankoil.

The products of Vagaikulum, which include lamps, temple bells and domestic

vessels, are the best known and the demand for them is brisk.

c) Lacquerware

This craft is practiced mainly at Ambasamudram. The craft came into

being about a century back. The craft is being practiced by a separate set of

113

people locally called Marakadasalkarar. Mainly toys for children, flower vases,

kumkum boxes, bowls, pintrays are being produced.

d) Wood Carving

The style of wood carving in this part of the state is entirely different

from that of other carvings. The history of the craft dates back to the era in

which bullock carts were first introduced. The panel type of carving is done

with ordinary carpentry tools and they have their own traditional beauty

depicting inherited designs mostly floral or animated.

e) Basket Making

The palmyra grows in abundance in Nanguneri and Radhapuram Taluks.

Its tender leaves are used for making baskets. It is pursued by women in the

villages in the south of Nanguneri taluk. The tender leaves are cut into strips

and dried in the sun and are often dried to a variety of colours. Fancy articles,

such as models of processional cars and animals are also made. In many

villages in south Nanguneri, the Nadar and Muslim women makes nice fancy

basket suitable for betel and tobacco boxes which is made using Tender

Palmyra leaves.

f) Cotton Weaving

The weaving of cotton cloths was the hereditary employment of

kaikkilaiyars, pattasalaiyars and pattunulkarars and formed the chief

occupation of a large number of muslims and of some other communities.

Wide streets lined with double rows of trees to give shade to the workers at the

long line of outstretched warp were the familiar signs of a settlement of

114

weavers. The main centres were Ambasamudram, Kallidaikurichi,

Viravanallur, Pattamadai, Pottalpudur and many neighbouring villages in

Ambasamudram taluk. The other chief centres were Tenkasi, Kadaiyanallur,

Tirunelveli, Palayamkottai, Melapalayam and Eruvadi (Nanguneri Taluk).

g) Silk Weaving and Looms

Cloths of pure silk were not woven in the District. The Pattasalaiyars

and Pattunulkarars made clothes for women out of a mixture of silk and cotton.

The looms used for weaving of all kinds were mostly of the old indigenous

pattern. Flying shuttles were rarely used in the looms in the important centers

of Ambasamudram taluk since they damage the warp. One or two machine

looms, in which the whole business was done by treadles were found in

Ambasamudram taluk.

h) Mat Making

Palmyra mat weaving: Mats of varying degrees of coarseness are made

from the leaves of Palmyara in almost all parts of the District where that tree is

plentiful. The manufacture of Palmyra articles forms a regular employment for

the women folk of the tapper families during the off-season.

Grass mat weaving: Mats of Korai grass are made mostly muslims in

Pattamadai, Alwarkurichi, Veeravanallur, Harikesavanallur and Kalakadu. For

ordinary mats, Korai is obtained from the beds of tanks and channels in the District,

after getting the permission from the government. It is dyed to a variety of colours

and woven by hand on to a warp, which is usually made of aloe fibre. The finished

articles are sent in large quantities to Pettai, where they are distributed within the

115

District and other parts of the State and Country. A mat of very superior

composition and considerable reputation is produced at Pattamadai. Its

manufacture is the monopoly of some Muslim families even to-day.

4.9.2 Small, Medium and Large Scale Industries

The District had a total of 47 large and the medium scale industries in

2004-2005 of which 35 units were under the private sector, one unit under the

co-operative sector and the remaining under the corporate sector.

a) Cement Industry

The Indian Cements Limited: It is one of the oldest cement plants in

Tamil Nadu under the private sector large scale industry which started its

commercial production in August 1949 with a licensed capacity of about 4.00

lakhs tones per year and it steadily increased the capacity over the years to

10.00 lakh tones per annum.

b) Chemical Industry

Industrial Chemicals and Monomers Limited: This medium sized plant

at Sankar Nagar manufactures chemicals from the year 1952 with a capacity of

300 tonnes per annum. The installed capacity was raised to 12000 tonnes per

annum. However due to labour problems the unit is permanently closed.

c) Paper Industries

Sun Paper Mills Limited: this Private sector medium scale paper

industry was established in the year 1964 at Vadakku Ariyanayagipuram near

Cheranmahadevi about 20 kms from Tirunelveli. Newsprint paper is the main

116

product manufactured in the industry. The initial capacity of 15000 tonnes per

annum was increased to 22000 tonnes.

d) Flour Mills

Kovilpatti Lakshmi Roller Flour Mills Ltd: It is a medium scale private

sector company established in the year 1964 at Gangaikondan, 16 kms from

Tirunelveli with the installed capacity of 42000 tonnes. This plant produces

Maida, Sooji, Atta and Bran.

e) Fabrics

Madura Fabrics: It is one of the reputed mills in spinning and textiles

and it is a division of Coats Vyella India Limited. More than a century old

industry under the private sector, it was established in the year 1880. It is

functioning in collaboration with coats Vyella Pvt Ltd. It is engaged in

spinning, weaving and processing. The spinning unit has 54800 spindles. The

quantity of yarn produced per day is 19137 kg. Balaramavarma Textile Mills:

It was started in the year 1948 in Shencottai as a Public Ltd., Company. Later it

was nationalized in the year 1974 and was taken over by the National Textile

Corporation in 1976. The mill is manufacturing blended yarn.

Gitanjali Mills Ltd: It was established in the year 1956 at Gomathipuram

in Sankarankoil. It is a medium scale spinning factory. A number of medium

scale spinning factories are functioning in different parts of Tirunelveli District.

They are Gomathy mills, Viravanallur, Sankar Spinning Mills Private Ltd.,

Sankarnagar, Karpagam Spinners Private Ltd., Vagaikulam near

Thiruppanikarisalkulam, Sivaskumar Spinning Mills (P) Ltd., Sankar Nagar,

117

Syed Cotton Mills (p) Ltd., Moontradaippu, Co-operative Spinning Mills at

Pettai, Sundaram Textiles Limited, Nanguneri, Nellai Cotton Mills Limited,

Sankar Nagar, Sri Ganapathy Mills, Sankar Nagar and Thirumalai Mills at

Gandhi Nagar.

f) Sugar Industry

Dharani Sugars and Chemicals Limited: This large scale industry at

Narayanapuram, 9 kms from Sivagiri was established in the year 1989 by non-

resident Indians. The initial installed crushing capacity of the industry was

2500 tonnes a day and subsequently the crushing capacity increased to 3000

tonnes a day.

g) Minerals and Mineral Based Industries

Limestone, kankar, garnet and ilmenite are available in large quantities

in the District. The kankar and limestone are used for the production of cement

by M/s India Cements Ltd., Sankar Nagar and Tamil Nadu Cements

Corporation Ltd., Alangulam in Virundhunagar District. There were 41 mining

leases for limestone and kankar, and four leases for garnet granted by the

Government.

h) Handloom Industry

Handloom weaving is an ancient industry. The textile cottage industry

includes cotton, silk, and bleaching, dying, finishing, hosiery, lace embroidery,

silk reeling, silk twisting. It is the chief means of livelihood to people who

entirely depend upon it. The chief classes among them were the Kakkallayars,

Pattasalayars and Pattunulkarars.

118

4.9.3 Industrial Cooperative Societies

The Tirunelveli Weavers’ Co-operative Production and Sales Society

Ltd., produces and sells yarns. The Kallidaikurichi Weavers’ Co-operative

Production and Sales Society Limited produces bed sheets, pillow covers,

lungies and dhoties. Valliammalpuram Industrial Weavers’ Co-operative

Production and Sales Society produce sarees, dhoties and polyester fabrics.

The Sankarankoil Small Match Producers’ Service Industrial Co-

operative Society Ltd., produces match boxes. Thenpothai Potter’ Co-

operative Cottage Industrial Society Ltd. Produces jars and toys in different

varieties. The Urkad Tiles and Brick Workers’ Industrial Co-operative Society

Limited manufactures roofing tiles, flooring tiles, ridge tiles, chimney tiles and

gunlay bricks. Fine mud products such as waterpot, hundi, mud fridge for

storing vegetables, mud tab and other varieties are made by Karukurchi potters’

Co-operative Cottage Industries Society Limited.

4.9.4 Khadi and Village Industries

The Khadi Village Commission has implemented programmes for the

development of hand spinning and hand weaving, carpentry and Blacksmithy,

manufacture of methane gas from cow dung, handmade paper, pottery,

processing of cereals, pulses and foot wear.

4.9.5 The Bell Industrial Estate

The Bell Industrial Estate was founded in the year 1952 as a tiny

industry with a total employment of 20 persons and with a connected power

load of 25 HP producing paper pins, paper clips and office staples. The unit has

spread over more than 30 acres of land on the Tiruchendur - Thoothudkudi

highway. Later during the 1960’s another unit was started to produce safety

119

pins exclusively. Another independent unit was started to produce steel wires

of very fine diameter, both copper coated and Zinc plated.

A few more units for producing fireworks, knitting needles, concrete

blocks, concrete pressure and non-pressure pipes and health care products like

cotton buds were also set up in the estate during the 1980’s. The estate is a full-

fledged composite unit producing the required capital machinery, raw materials

and the end product. The total employment in the whole of the Bell Industrial

Estate is more than 600 and the connected power load has crossed 1500 HP.

About 70 per cent of the total employees are women. Pollution control methods

have been adopted in effluent treatment.

4.10 Industrial Scenario of Tirunelveli District

In Tirunelveli District both the large scale as well as the SSI are

functioning. Among the SSIs, both the registered and unregistered SSI Units

are functioning. However, majority of the SSI Units are unregistered. The

following table exhibits the current industrial trends in SSI Sector.

Table 4.3

Industrial Scenario of Tirunelveli District

1. Registered Industrial Unit 16,672

2. Total Industrial Unit 41,500

3. Registered Medium and Large Unit 42

4. Estimated average number of daily worker employed in SSIs 7

5. Employment in Large and Medium Industries 20

6. No. of Industrial Area in Tirunelveli District 6

7. Turnover of Small Scale Industries (₹ in lakhs) 20,00,000

8. Turnover of Medium and Large Scale Industries (₹ in crores) 75 Cr

Source: MSME Development Institute Report on Tirunelveli District (2012)

120

4.11 Registered Small Scale Industrial Units in Tirunelveli District

In Tirunelveli District as per the reports published by the MSMS

Development Institute, the total number of registered SSI Units as on 31st July,

2008 is 16,672. These industries altogether invested a sum of ₹ 26,844.63 lakh

in the land, building, plant and machinery. SSI Units generated employment

for 78,566 persons in Tirunelveli District.

Table 4.4

Registered SSI Units in Tirunelveli District as on 31-07-2008

Sl.

No. Name of the block

No. of registered

MSMEs Units

upto 31.07.2008

Investment in

Employment

Generated Land &

Building

(₹ in Lakhs)

Plant &

Machinery

(₹ in Lakhs)

1 Alangulam 533 407.00 330 1,880

2 Ambasamudram 1,010 631.49 490 5,599

3 Cheranmadevi 311 243.80 200 1,410

4 Kadayam 332 466.55 160 1,860

5 Kadayanallur 541 244.00 390 2,275

6 Kalakad 302 242.90 300 1,195

7 Keelapavoor 848 206.18 987 3,740

8 Kuruvikulam 699 196.00 520 4,260

9 Manur 2,080 228.00 2,220 8,551

10 Meelaneelitha Nallur 319 1,694.77 210 1,485

11 Nanguneri 475 220.00 313 1,745

12 Palayamkottai 3,114 764.00 1,268 17,409

13 Pappakudi 363 3,220.00 200 2,485

14 Radhapuram 573 446.83 590 2,126

15 Sankarankovil 1,207 1,712.48 823 6,550

16 Shencottai 1,160 909.05 720 6,416

17 Tenkasi 986 1,050.24 880 4,126

18 Valliyoor 876 926.00 1,430 2,555

19 Vasudevanallur 943 594.34 410 2,899

Total 16,672 14,403.63 12,441 78,566

Source: MSME Development Institute Report on Tirunelveli District (2012)

121

Upto 31st March 2006 14,801 registered SSI Units are functioning in

Tirunelveli District and it grown into 16,672 in 2008 with a growth of 11.22

percent. Among various Blocks, Palayamkottai Block has a total of 3,114

industries and followed by Manur Block with 2,080 SSI Units.

During the year 2013-14 in Tirunelveli District 4,114 SSI Units have

been registered. These industries are spread over in 19 blocks of the District.

Among these industries, 2,262 Units are manufacturing industries and 1,852

Units are Service based industries. In total, 3573 micro industries, 498 small

industries and 43 medium industries have been formed during the year 2013-

2014. Among the total new industries 22 percent of the industries are formed in

the Palayamkottai Block and 11 percent of new industries are formed in

Sankarankovil Block and the remaining 67 percent of registered SSI Units are

formed in the other Blocks. The following Table exhibits the distribution of

registered SSI Units which are formed during the year 2013-14 in Tirunelveli

District.

122

Tab

le 4

.5

Reg

iste

red

SS

I U

nit

s in

Tir

un

elv

eli

Dis

tric

t as

on

31

-03

-2014

S.

No

. N

am

e o

f th

e B

lock

P

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ge

Ma

nu

fact

uri

ng

Ser

vic

e

Ov

era

ll t

ota

l M

icro

S

ma

ll

Med

ium

T

ota

l M

icro

S

ma

ll

Med

ium

T

ota

l

1

Ala

ngula

m

6

11

7

18

1

1

36

9

8

12

2

1

11

2

47

2

Am

bas

amudra

m

5

97

1

5

1

11

3

81

1

0

2

93

2

06

3

Cher

anm

adev

i 3

5

8

9

0

68

4

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1

56

1

23

4

Kad

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3

5

8

9

0

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4

9

6

1

56

1

23

5

Kad

ayan

allu

r 6

1

17

1

8

1

13

6

98

1

2

2

11

1

24

7

6

Kal

akad

3

5

8

9

0

68

4

9

6

1

56

1

23

7

Kee

lapav

oor

3

58

9

0

6

8

49

6

1

5

6

12

3

8

Kuru

vik

ula

m

3

58

9

0

6

8

49

6

1

5

6

12

3

9

Man

ur

3

58

9

0

6

8

49

6

1

5

6

12

3

10

M

eela

nee

lith

a N

allu

r 3

5

8

9

0

68

4

9

6

1

56

1

23

11

N

anguner

i 4

7

8

12

0

9

0

65

8

1

7

4

16

5

12

P

alay

amkott

ai

22

4

28

6

7

2

49

8

35

8

43

7

4

07

9

05

13

P

appak

udi

2

39

6

0

4

5

33

4

1

3

7

82

14

R

adhap

ura

m

6

11

7

18

1

1

36

9

8

12

2

1

11

2

47

15

S

ankar

ankovil

1

1

21

4

33

1

2

49

1

79

2

1

4

20

4

45

3

16

S

hen

cott

ai

3

58

9

0

6

8

49

6

1

5

6

12

3

17

T

enkas

i 6

1

17

1

8

1

13

6

98

1

2

2

11

1

24

7

18

V

alli

yoor

6

11

7

18

1

1

36

9

8

12

2

1

11

2

47

19

V

asudev

anal

lur

2

39

6

0

4

5

33

4

1

3

7

82

T

ota

l 1

00

1

94

7

30

4

11

2

26

2

16

26

1

94

3

2

18

52

4

11

4

Sourc

e: D

IC, T

irun

elvel

i

123

4.11 Government schemes

4.11.1 Subsidies

District Industries Centre, Tirunelveli has granted Capital Subsidy of

` 40.Lakhs for 7 manufacturing enterprises during the first year of operation of

the new Industrial policy for MSMEs 2008 – 2009.

4.11.2 Micro, Small and Medium Industries Policy - 2008

Ø Released by Honourable Chief Minister of Tamil Nadu on 22 - 02 - 2008.

Ø Subsidies for Micro Manufacturing Enterprises located anywhere in

Tirunelveli District

Ø 15% Capital subsidy (Plant and Machinery)

Ø LTPT subsidy at a flat rate of 20% for 3 years from DCP or date of power

supply whichever is later

Ø Subsidy equal to the assessed Value Added Tax paid by them for the first 6

years after Date of commencement of Production upto the value of

investment in plant and machinery at the time of allotment of EM.No. (Part

II )

4.11.3 Subsidy to Backward Area

Ø 15% Capital subsidy (Plant and Machinery) subject to a maximum of ` 30

Lakhs.

Ø 5% Additional subsidy subject to a maximum of ` 5 Lakhs to Enterprises

which employ atleast 25 workers for minimum period of 3 years.(ESI, EPF

records to be furnished)

124

Ø Additional Capital subsidy of 25% subject to a maximum of ` 3 Lakhs for

MSME for promotion of cleaner and environment friendly technologies.

Ø LTPT subsidy at a rate of 20% for 3 years from DCP or date of power

supply whichever is later.

Ø Additional Capital subsidy of 5% subject to a maximum of ` 2 Lakhs will

be given to enterprises set up by Women, SC/ST, Physically disabled &

transgender entrepreneurs.

Industrially Backward Blocks

(i) Alangulam

(ii) Meelaneelithanallur

(iii) Kuruvikulam

(iv) Kadayam

(v) Radhapuram

(vi) Pappakudi

(vii) Nanguneri

Industrial estates promoted by the Government and Government

agencies like SIPCOT, SIDCO etc.

4.11.4 Subsidy for Agro Based Enterprises

Ø 15% Capital subsidy (Plant and Machinery) subject to a maximum of ` 30

Lakhs.

Ø 5% Additional subsidy subject to a maximum of ` 5 Lakhs to Enterprises

which employ atleast 25 workers for minimum period of 3 years.(ESI, EPF

records to be furnished)

125

Ø Additional Capital subsidy of 25% subject to a maximum of ` 3 Lakhs

for MSME for promotion of cleaner and environment friendly technologies.

Ø LTPT subsidy at a rate of 20% for 3 years from DCP or date of power

supply whichever is later.

Ø Additional Capital subsidy of 5% subject to a maximum of ` 2 Lakhs will

be given to enterprises set up by Women, SC/ST, Physically disabled &

transgender entrepreneurs.

4.11.5 Special Capital Subsidy for Thrust Sector Enterprises

15% Special capital subsidy on Plant and Machinery for the following

Enterprises

(i) Electrical & Electronics Industry

(ii) Leather & Leather goods

(iii) Auto parts and components

(iv) Drugs and Pharmaceuticals

(v) Solar Energy Equipment

(vi) Gold & Diamond Jewellery for Exports

(vii) Pollution Control Equipments

(viii) Sports Goods and Accessories

(ix) Cost effective building material

(x) Readymade garments

4.11.6 Stamp Duty Exemption for MSME

Micro Manufacturing Enterprises will be exempted from payment of

stamp duty on mortgaged and pledged documents.

126

4.11.7 Industrially Backward Areas

Ø Enterprises in SIDCO or Government development estates for Micro and

Small Enterprises will be entitled to 50% rebate on stamp duty and

registration fee at the time of original allotment based on the transfer value

fixed by SIDCO or Government in respect of such estates.

Ø In respect of MSME set up in Industrially Backward areas, the 50% rebate

on stamp duty and registration fee would be reimbursed after

commencement of production.

4.11.8 Back Ended Interest Subsidy

A back ended interest subsidy at the rate of 3% (subject to a maximum

of ` 10 lakhs per enterprise over a period of five years) will be extended on

loans taken up to ` 100 lakhs on Credit Linked Capital Subsidy Scheme

(CLCSS).

127